GBP/USD tops five-week high above 1.3050 amid broad US dollar weakness

• GBP/USD remains mildly positive following the latest pullback.
• Coronavirus cases in the UK rise by 30%.
• The first post-Brexit budget will also be important to determine near-term trade headlines.

Although coronavirus cases are on a spree in the UK, the GBP/USD pair benefits from the broad US dollar weakness while marking 0.32% gains to 1.3075 during the pre-London session on Monday. The pair earlier surged to the highest since the January-end while the latest pullback seems to fail in disappointing the bulls.

A 30% rise in the total numbers of coronavirus (COVID-19) cases to 273 as well as the third death due to the deadly epidemic seem to portray the stronghold of the disease over the British economy.

Over the counter, 20 deaths have been registered in the US with the Washington Post raising calls of a more than double increase in the numbers in the next 48 hours. While identifying this, US President Donald Trump is considering putting together measures to address coronavirus economic impact.

During the weekend, worsening situations in Europe grabbed major attention to trigger the early-day risk-off that dragged the US treasury yields to the record lows below 1.0%.

However, the pullback in risk seems to take place within the last few minutes amid active COVID-19 headlines from the US, Japan, Australia and New Zealand.

With no major data on the UK’s economic calendar, also a comma to the Brexit negotiations with the EU, markets will keep eyes on the virus updates while waiting for Wednesday’s Budget from the British Chancellor Rishi Sunak.

Technical Analysis

A confluence of 50% Fibonacci retracement of its declines from December 2019 to February 2020 as well as a falling trend line from December 31, 2019, around 1.3115/20, becomes the key upside barrier.